A “tax holiday” in the city of Sylvania might be about to end, at least for awhile.
City council’s finance committee Monday recommended that the full council restore for one year 1 1/2 mils of property tax relief granted in 2007 and 2008 when the city’s finances were stronger.
Council is to vote on the matter at its regular meeting Monday.
The millage, once restored, would generate $630,000 in 2012, that would be used for debt service, giving relief to the city’s strained budget.
It would cost the owner of a $100,000 home about $45 in 2012.
At current spending rates, Sylvania is expected to dip into reserves to cover a $1.7 million shortfall this year.
A 2012 budget will be further impaired by a loss of $320,000 in state support plus $746,000 in new debt service.
Council members had been discussing three possibilities for raising revenues: hiking the 1.5 percent income tax, reducing the dollar-for-dollar income tax credit Sylvania residents get for payroll taxes paid to another municipality, and restoring the suspended 1.5 mils in property tax.
Council members said that in 2012, there would be a serious community-wide discussion on a long-term solution. These would include cost-cutting measures and revenue-raising options the city may adopt.
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